Birchstone Brief for the week ended 14 January 2021

ATO Update

TR 2021/5 – The ‘at risk’ rule for R&D tax offsets

The ATO has issued a Taxation Ruling which finalises its guidance on the ‘at risk’ rule for the purposes of the research and development tax offsets. 

LCR 2021/3  Temporary full expensing

The ATO has issued a Law Companion Ruling which finalises its guidance on the application of the temporary full expensing measures for small businesses.

Class Rulings

The ATO has issued the following class rulings:

  • CR 2021/100 – Australian Sports  Commission – dAIS athlete grants; and
  • CR 2021/101 – Western I.V.F. Pty Ltd – scrip for scrip roll-over.

State Taxes

Land Tax (NSW): Exemptions

Revenue NSW has issued two new rulings which set out when certain exemptions from land tax can be accessed:

  • LT 112 – Land Tax Management Act 1956 – Section 10Q; Exemption – Land Used and Occupied Primarily for Low Cost Accommodation.


Singapore Telecom Australia Investments Pty Ltd v Commissioner of Taxation [2021] FCA 1597 – Interest deductions

The Federal Court has upheld amended assessments issued by the Commissioner of Taxation to an Australian company taxpayer denying $894 million in interest deductions on the basis that the taxpayer had received a transfer pricing benefit from an agreement with a related foreign company.


Exposure draft materials: ATO debt recovery

The Government has released exposure draft materials that extend the power of the Administrative Appeals Tribunal to pause or modify ATO debt recovery action in relation to disputed tax assessments under review by the Small Business Taxation Division (SBTD) of the AAT.

STP reporting exemption

legislative instrument has been made to exempt certain entities from reporting under Single Touch Payroll for the 2021-22 and 2022-23 financial years.


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